Russian stocks to rise as oil rebounds, US indices grow

MOSCOW, Dec 22 (PRIME) -- Russian stocks are likely to grow at the start of the Tuesday trading session, supported by a slight rebound in oil prices and a growth of U.S. stock indices, analysts said.

“Today, a slight increase is possible at the start of the trade. Stabilization of the Brent oil price in the range of U.S. $36–37 per barrel and of the S&P 500 index above the 2,000-point mark prompt a rebound in the RTS index,” investment company Olma’s senior analyst Anton Startsev said.

The background prior to the opening of the Russian stock market is moderately positive as the Brent rises 0.63% to $36.58 per barrel as of 8.40 a.m. Moscow time.

In addition to the oil price growth, U.S. floors closed with a strong increase on Monday, which makes the background for the Russian market moderately positive. “We expect the market to open with a slight increase of the MICEX index in the range of 1,720–1,725 points,” Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

On Monday, the Dow Jones Industrial Average rose 0.72%, while the S&P 500 climbed 0.78% and the Nasdaq grew 1.01%.

But the beginning of trade today may be close to neutral and the MICEX may open in the range of 1,715–1,720 points as the oil price is still low, investment company Solid’s senior analyst Oleg Shagov said. The 1,700 and 1,650 point levels will act as support, while 1,750 and 1,790 point will act as resistance for the MICEX index, he added.

Investors will also focus on the U.S. July–September gross domestic product (GDP) and new housing sales data, which are to be released later in the day.

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